The Seagull Partnership has three equal partners. Partner A's tax year ends June 30th, and Partners B and C use a calendar year. If the partnership uses the calendar year to report its income, Partner A is permitted to defer partnership income earned from July through December 2018 until he files his tax return for his year ending June 30, 2019.

Question

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Partner A can defer reporting the partnership income earned from July through December 2018 until his tax year ending June 30, 2019, because his tax year ends later than the partnership's calendar year. This allows him to defer recognizing the income until his tax return for the year ending June 30, 2019.

The Seagull Partnership Has Three Equal Partners